The Rebirth of Stakeholder Capitalism?

I think that we have seen enough empirical data since the late 1970’s to be able to argue that shareholder capitalism is one of the drivers of income inequality and partnered with “Reaganomics” killed the American Dream as we knew it from our commonly shared mythology. The minute that C.E.O pay was divorced from their company’s health, overall performance and customer service and instead tied to stock market performance, the whole capitalist dynamic changed for the worse. I would argue that customer service across the board is at an all time low and that is not the fault of workers, the fault lies with executive management. Their fixation with stock prices and shareholder interests has colored their entire business model to a narrow parameter and I think that there is a divergence between what is good for shareholders and what is good for employees and consumers. I believe that what works for employees, benefits the consumers as well because they are effectively in the same class; as Paul Krugman likes to say, what one consumer spends at the market becomes another’s paycheck and that person’e paycheck eventually becomes someone else’s paycheck, hence the virtuous cycle continues. The small class of big time investors and C.E.O’s do not grease the wheels of our economy as efficiently or as effectively as the broad class of working class Americans. The 99% are a greater economic force than the 400 or so billionaires we see in Forbes. I don’t understand why it isn’t self evident that for our recovery to attain maximum potential and what is needed, is to unleash the full force of consumer spending that can only be attained if we had full employment and living wages. Americans are extremely hard workers; why keep them in this perpetual slump; we have the tools necessary to tap into greatness, by buying into the supply side economic myth despite its failures of the past forty years, we have let misery and recessions dominate our economic landscape for way too long. We should heed JFK’s words and lift all the boats with a rising tide; not just the yachts.
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  1. Unfortunately the reason is because the one percent class wants to restore the Aristocratic and peasant system known as Feudalism practiced in the middle ages.

    1. You couldn’t be more correct!

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